A Large Software Manufacturer Attempts to Lock in Customers by Making

question 107

Multiple Choice

A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. The strategy used by the company is referred to as ________.

• A) switching costs strategy
• B) low cost operation strategy
• C) standardization strategy
• D) consumerist strategy

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Definitions:

Transfer Payments

Payments made by the government to individuals or organizations without the receiver providing any goods or services in exchange.

GDP Calculation

The process of determining the Gross Domestic Product of a country, which can include adding up all income earned in the economy or all expenditures made.

Consumption

The use of goods and services by households. It is a primary component of GDP and an indicator of economic health.

Government Purchases

Expenditures by the government on goods and services that are part of a country's national budget.